Common use of Peak Forward Market Price Clause in Contracts

Peak Forward Market Price. The Initial Mark for the Off-Peak Forward Market Price will be the Initial Mark for the On-Peak Forward Market Price multiplied by the off-peak to on-peak price ratio for the month from Table 2. Each Business Day during the term of this Agreement, each of the Companies will calculate the Mark for On-Peak Forward Market Prices based on the following methodology: ▪ For each month, if the Companies or their agent are able to obtain Available Broker Quotes (as defined above), each of the Companies will include such quotes in the calculation of the MtM. For a given month, the Available Broker Quotes used may be quoted specific to that month or for a multi-month block period containing the given month. If the Companies obtain multiple Available Broker Quotes that contain a given month, the Available Broker Quote for the shortest available period will be used to calculate the Available Broker Quote used to set the Mark for the given month. Thus, if the Companies or their agent are unable to obtain an Available Quote specific to that month, but can "back out" a monthly quote proxy using multi-month block Available Broker Quotes, the "backed out" price method will be utilized. ▪ If, on a given Business Day, the Companies or their agent are not able to obtain Available Broker Quotes, the Companies will look to alternative sources of price data and will rely on the prices from alternative data sources to update the Mark for the On-Peak Forward Price, if pricing data is available from the alternative sources. ▪ If Broker quotes for a given month are not available on a given Business Day (the “Current Business Day”) and pricing data is unavailable from alternative sources for that month, the On- Peak Forward Market Prices for that month will be updated based on the change in On-Peak Forward Market Prices between the prior Business Day and the Current Business Day for those same months in different years during the Delivery Period for which quotes are available for the Current Business Day. ▪ If, on a given Business Day, the Company or its agent is not able to obtain an Available Broker Quote for a given calendar month of any year during the Delivery Period, and pricing data from alternative sources for the given calendar month for any year during the Delivery Period is also unavailable, then each of the Companies will set the On-Peak Forward Market Price using a methodology that utilizes the best information available to each of the Companies at that time. As noted above, on each Business Day during the term of this Agreement, the Mark for the Off-Peak Forward Market Price for a given month will be equal to the Mark for the On-Peak Forward Market Price for that month multiplied by the historical off-peak to on-peak price ratio for that month from Table 2. TIMING OF CALCULATIONS Illustrative values for Tables 1, 2 and 3 will be provided 14 days prior to the Illinois Auction. On the closing day of the Illinois Auction, the following parameters will be set:

Peak Forward Market Price. The Initial Mark for the Off-Peak Forward Market Price will be the Initial Mark for the On-Peak Forward Market Price multiplied by the off-peak to on-peak price ratio for the month from Table 2. Each Business Day during the term of this Agreement, each of the Companies will calculate the Mark for On-Peak Forward Market Prices based on the following methodology: ▪ For each month, if the Companies or their agent are able to obtain Available Broker Quotes (as defined above), each of the Companies will include such quotes in the calculation of the MtM. For a given month, the Available Broker Quotes used may be quoted specific to that month or for a multi-month block period containing the given month. If the Companies obtain multiple Available Broker Quotes that contain a given month, the Available Broker Quote for the shortest available period will be used to calculate the Available Broker Quote used to set the Mark for the given month. Thus, if the Companies or their agent are unable to obtain an Available Quote specific to that month, but can "back out" a monthly quote proxy using multi-month block Available Broker Quotes, the "backed out" price method will be utilized. ▪ If, on a given Business Day, the Companies or their agent are not able to obtain Available Broker Quotes, the Companies will look to alternative sources of price data and will rely on the prices from alternative data sources to update the Mark for the On-Peak Forward Price, if pricing data is available from the alternative sources. ▪ If Broker quotes for a given month are not available on a given Business Day (the “Current Business Day”) and pricing data is unavailable from alternative sources for that month, the On- On-Peak Forward Market Prices for that month will be updated based on the change in On-On- Peak Forward Market Prices between the prior Business Day and the Current Business Day for those same months in different years during the Delivery Period for which quotes are available for the Current Business Day. ▪ If, on a given Business Day, the Company or its agent is not able to obtain an Available Broker Quote for a given calendar month of any year during the Delivery Period, and pricing data from alternative sources for the given calendar month for any year during the Delivery Period is also unavailable, then each of the Companies will set the On-Peak Forward Market Price using a methodology that utilizes the best information available to each of the Companies at that time. As noted above, on each Business Day during the term of this Agreement, the Mark for the Off-Off- Peak Forward Market Price for a given month will be equal to the Mark for the On-Peak Forward Market Price for that month multiplied by the historical off-peak to on-peak price ratio for that month from Table 2. TIMING OF CALCULATIONS Illustrative values for Tables 1, 2 and 3 will be provided 14 days prior to the Illinois Auction. On the closing day of the Illinois Auction, the following parameters will be set:

Peak Forward Market Price. The Initial Mark for the Off-Peak Forward Market Price will be the Initial Mark for the On-Peak Forward Market Price multiplied by the off-off- peak to on-peak price ratio for the month from Table 2. Each Business Day during the term of this Agreement, each of [the Companies Company / the Companies] will calculate the Mark for On-Peak Forward Market Prices based on the following methodology: ▪ For each month, if [the Companies Company / the Companies] or their [its /their] agent are [is / are] able to obtain Available Broker Quotes (as defined above), each of [the Companies Company / the Companies] will include such quotes in the calculation of the MtM. Table 2. For a given month, the Available Broker Quotes used may be quoted specific to that month or for a multi-month block period containing the given month. If the Companies obtain [Company / the Companies] [obtains / obtain] multiple Available Broker Quotes that contain a given month, the Available Broker Quote for the shortest available period will be used to calculate the Available Broker Quote used to set the Mark for the given month. Thus, if [the Companies Company / the Companies] or their [its/their] agent are [is / are] unable to obtain an Available Quote specific to that month, but can "back out" a monthly quote proxy using multi-month block Available Broker Quotes, the "backed out" price method will be utilized. ▪ If, on a given Business Day, [the Companies Company / the Companies] or their [its /their] agent are [is / are] not able to obtain Available Broker Quotes, [the Companies Company / the Companies] will look to alternative sources of price data and will rely on the prices from alternative data sources to update the Mark for the On-Peak Forward Price, if pricing data is available from the alternative sources. ▪ If Broker quotes for a given month are not available on a given Business Day (the “Current Business Day”) and pricing data is unavailable from alternative sources for that month, the On- On-Peak Forward Market Prices for that month will be updated based on the change in On-Peak Forward Market Prices between the prior Business Day and the Current Business Day for those same months in different years during the Delivery Period for which quotes are available for the Current Business Day. ▪ If, on a given Business Day, the Company or its agent is not able to obtain an Available Broker Quote for a given calendar month of any year during the Delivery Period, and pricing data from alternative sources for the given calendar month for any year during the Delivery Period is also unavailable, then each of the Companies change in the On-Peak Forward Market Price [the Company / the Companies] will set the On-Peak Forward Market Price using a methodology that utilizes the best information available to each of [the Companies Company / the Companies] at that time. As noted above, on each Business Day during the term of this Agreement, the Mark for the Off-Peak Forward Market Price for a given month will be equal to the Mark for the On-Peak Forward Market Price for that month multiplied by the historical off-peak to on-peak price ratio for that month from Table 2. TIMING OF CALCULATIONS Illustrative values for Tables 1, 2 and 3 will be provided 14 days prior to the Illinois Auction. On the closing day of the Illinois Auction, the following parameters will be set:

Peak Forward Market Price. The Initial Mark for the Off-Peak Forward Market Price will be the Initial Mark for the On-On- Peak Forward Market Price multiplied by the off-peak to on-peak price ratio for the month from Table 2. Each Business Day during the term of this Agreement, each of the Companies Company will calculate the Mark for On-Peak Forward Market Prices based on the following methodology: ▪ For each month, if the Companies Company or their its agent are is able to obtain Available Broker Quotes (as defined above), each of the Companies Company will include such quotes in the calculation of the MtM. Mark. For a given month, the Available Broker Quotes used may be quoted specific to that month or for a multi-month block period containing the given month. If the Companies obtain Company obtains multiple Available Broker Quotes that contain a given month, the Available Broker Quote for the shortest available period will be used to calculate the Available Broker Quote used to set the Mark for the given month. Thus, if the Companies Company or their its agent are is unable to obtain an Available Quote specific to that month, but can "back out" a monthly quote proxy using multi-month block Available Broker Quotes, the "backed out" price method will be utilized. The method for “backing out” monthly prices is discussed further below. ▪ If, on a given Business Day, the Companies Company or their its agent are is not able to obtain Available Broker Quotes, the Companies Company will look to alternative sources of price data and will rely on the prices from alternative data sources to update the Mark for the On-Peak Forward Price, if pricing data is available from the alternative sources. ▪ If Broker quotes for a given month are not available on a given Business Day (the “Current Business Day”) and pricing data is unavailable from alternative sources for that month, the On- On-Peak Forward Market Prices for that month will be updated based on the change in On-Peak Forward Market Prices between the prior Business Day and the Current Business Day for those same months in different years during the Delivery Period for which quotes are available for the Current Business Day. Specifically, the On-Peak Forward Market Price will equal the previous Business Day’s On-Peak Forward Market Price plus the difference between that Business Day’s and the previous Business Day’s On-Peak Forward Market Price for that same month in the calendar year immediately prior (or, if unavailable, for the same month in a prior year during the Delivery Period, with a preference for using the month that is closest in time to the month for which the On-Peak Forward Market Price is being estimated). The following example illustrates this methodology: Janune 2, 20087, On-Peak Forward Market Prices are: Feb 2010: $56 Feb 2011: $53 On Janune 3, 20087, the Company obtains an Available Broker Quote for Feb 2010 of $57 but no Available Broker Quote is available for Feb 2011. The On-Peak Forward Market Price for Feb 2011 on Jaune 3, 20087 is set equal to $54 (=$53 + ($57-$56)) ▪ If, on a given Business Day, the Company or its agent is not able to obtain an Available Broker Quote for a given calendar month of any year during the Delivery Period, and pricing data from alternative sources for the given calendar month for any year during the Delivery Period is also unavailable, then each of the Companies Company will set the On-Peak Forward Market Price using a methodology that utilizes the best information available to each of the Companies Company at that time. As noted above, on each Business Day during the term of this Agreement, the Mark for the Off-Peak Forward Market Price for a given month will be equal to the Mark for the On-Peak Forward Market Price for that month multiplied by the historical off-peak to on-on- peak price ratio for that month from Table 2. TIMING OF CALCULATIONS Illustrative values For multi-month blocks where the average for Tables 1the block and a component of the block are quoted, 2 and 3 the component will be provided 14 days equal to its quoted price and the prices for other months in the block will be constructed in a way so that the simple average of the monthly prices of the months in the block equals the quote for the block. For example, if Q4 2009 is quoted at $50/MWh and Oct 2009 is quoted at $46/MWh, then Oct 2009 will still be quoted at $46/MWh and Nov-Dec 2009 (still a block) will now be quoted at $52/MWh which equals ($50 * 3 - $46) / 2. If after this process there are still blocks that have not been completely disaggregated, the Buyer will disaggregate the quotes in the following manner. The buyer will first calculate the simple average of the price quotes for the same individual months in the immediately prior calendar year. The percentage by which each single month price differs from this average will be applied to the Illinois Auctionblock quote to establish prices for each respective month represented in the block. On the closing day The following is an example of the Illinois Auction, process to be used to disaggregate the following parameters will be setblock quotes into individual monthly prices:

Peak Forward Market Price. The Initial Mark for the Off-Peak Forward Market Price will be the Initial Mark for the On-Peak Forward Market Price multiplied by the off-peak to on-peak price ratio for the month from Table 2. Each Business Day during the term of this Agreement, each of [the Companies Company / the Companies] will calculate the Mark for On-Peak Forward Market Prices based on the following methodology: ▪ For each month, if [the Companies Company / the Companies] or their [its /their] agent are [is / are] able to obtain Available Broker Quotes (as defined above), each of [the Companies Company / the Companies] will include such quotes in the calculation of the MtM. Table 2. For a given month, the Available Broker Quotes used may be quoted specific to that month or for a multi-month block period containing the given month. If the Companies obtain [Company / the Companies] [obtains / obtain] multiple Available Broker Quotes that contain a given month, the Available Broker Quote for the shortest available period will be used to calculate the Available Broker Quote used to set the Mark for the given month. Thus, if [the Companies Company / the Companies] or their [its/their] agent are [is / are] unable to obtain an Available Quote specific to that month, but can "back out" a monthly quote proxy using multi-month block Available Broker Quotes, the "backed out" price method will be utilized. ▪ If, on a given Business Day, [the Companies Company / the Companies] or their [its /their] agent are [is / are] not able to obtain Available Broker Quotes, [the Companies Company / the Companies] will look to alternative sources of price data and will rely on the prices from alternative data sources to update the Mark for the On-Peak Forward Price, if pricing data is available from the alternative sources. ▪ If Broker quotes for a given month are not available on a given Business Day (the “Current Business Day”) and pricing data is unavailable from alternative sources for that month, the On- Peak Forward Market Prices for that month will be updated based on the change in On-Peak Forward Market Prices between the prior Business Day and the Current Business Day for those same months in different years during the Delivery Period for which quotes are available for the Current Business Day. ▪ If, on a given Business Day, the Company or its agent is not able to obtain an Available Broker Quote for a given calendar month of any year during the Delivery Period, and pricing data from alternative sources for the given calendar month for any year during the Delivery Period is also unavailable, then each of the Companies change in the On-Peak Forward Market Price [the Company / the Companies] will set the On-Peak Forward Market Price using a methodology that utilizes the best information available to each of [the Companies Company / the Companies] at that time. As noted above, on each Business Day during the term of this Agreement, the Mark for the Off-Peak Forward Market Price for a given month will be equal to the Mark for the On-Peak Forward Market Price for that month multiplied by the historical off-peak to on-peak price ratio for that month from Table 2. TIMING OF CALCULATIONS Illustrative values for Tables 1, 2 and 3 will be provided 14 days prior to the Illinois Auction. On the closing day of the Illinois Auction, the following parameters will be set: